Company Separation Agreement Template for Switzerland

A comprehensive legal document governed by Swiss law that formalizes the separation of a company into two or more distinct entities. This agreement outlines the terms and conditions of the separation, including asset division, liability allocation, employee transfers, intellectual property rights, and ongoing obligations between the separated entities. It ensures compliance with Swiss corporate law, particularly the Swiss Code of Obligations and Swiss Merger Act, while addressing crucial aspects such as data protection, competition law, and tax implications. The document provides a legally binding framework for executing the separation and managing the transition period.

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What is a Company Separation Agreement?

The Company Separation Agreement is essential in Swiss corporate restructuring scenarios where a business entity needs to be divided into two or more separate companies. This document is commonly used in situations such as corporate reorganizations, spin-offs, demergers, or strategic divisional separations. It must comply with Swiss legal requirements, particularly the Swiss Code of Obligations and Swiss Merger Act, while addressing critical aspects such as asset division, employee transfers, intellectual property rights, and ongoing business relationships. The agreement serves as the primary legal framework for executing the separation, ensuring clear allocation of rights and responsibilities, and managing potential risks and liabilities. It's particularly important in complex separations involving multiple stakeholders, significant assets, or cross-border elements.

What sections should be included in a Company Separation Agreement?

1. Parties: Identification of the companies involved in the separation, including their registered details and authorized representatives

2. Background: Context of the existing business relationship and reasons for separation

3. Definitions: Detailed definitions of key terms used throughout the agreement

4. Separation Structure: Overview of how the separation will be implemented, including timing and key milestones

5. Asset Division: Detailed provisions for the division and transfer of assets between parties

6. Liability Allocation: Assignment of existing and future liabilities between the separating entities

7. Employee Matters: Provisions regarding the transfer or retention of employees and related obligations

8. Intellectual Property Rights: Division and future usage rights of intellectual property

9. Data Protection and Confidentiality: Obligations regarding data handling and confidentiality post-separation

10. Financial Arrangements: Financial settlements, including any purchase price, adjustments, and payment terms

11. Tax Matters: Allocation of tax liabilities and responsibilities

12. Transition Services: Arrangements for continued support services during the transition period

13. Representations and Warranties: Standard and specific warranties given by each party

14. Governing Law and Jurisdiction: Confirmation of Swiss law application and jurisdiction for disputes

15. Dispute Resolution: Procedures for handling disputes, including mediation and arbitration provisions

16. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

What sections are optional to include in a Company Separation Agreement?

1. Non-Compete Provisions: Restrictions on competitive activities, used when parties will operate in similar markets

2. Customer Allocation: Provisions for dividing or sharing customer relationships, relevant when both parties serve the same market

3. Shared Contracts: Arrangements for handling contracts that benefit both parties, used when significant shared contracts exist

4. Pension Arrangements: Special provisions for pension schemes, required when pension funds need to be divided

5. Environmental Matters: Specific provisions for environmental liabilities, necessary for industries with environmental impacts

6. Real Estate Provisions: Detailed arrangements for property division, needed when real estate assets are involved

7. Insurance Matters: Provisions for handling insurance policies and claims, relevant when significant insurance arrangements exist

8. International Operations: Specific provisions for international aspects, needed when separation involves multiple jurisdictions

What schedules should be included in a Company Separation Agreement?

1. Asset Register: Detailed list of all assets being transferred or retained by each party

2. Employee Transfer List: List of employees transferring to each entity with their terms and conditions

3. Intellectual Property Register: Comprehensive list of IP rights and their allocation

4. Financial Statements: Relevant financial information and separation balance sheets

5. Transition Services Agreement: Detailed terms and conditions for transition services

6. Contract List: Schedule of contracts and their allocation between parties

7. Real Estate Details: Details of property rights and obligations

8. Tax Allocation Schedule: Detailed breakdown of tax responsibilities and allocations

9. Pension Arrangements: Details of pension scheme divisions and obligations

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Switzerland

Publisher

Genie AI

Cost

Free to use

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